The US Department of Labor has retrieved $151,208 in back wages and damages for 64 security guards from Koda Group Inc., a Michigan-based security company. This recovery is a result of a consent judgment and order that required Koda Group and its owner, Timothy Gilbert, to pay the sum. The sum includes $75,604 in back wages and an equal amount in liquidated damages. The judgment was filed after the Department of Labor’s Wage and Hour Division investigated alleged violations of the Fair Labor Standards Act (FLSA).
The investigation revealed that Koda Group incorrectly classified its security guards as independent contractors. The company paid the guards a flat rate, neglecting to pay overtime for hours worked over 40 in a week. The company also failed to display a notice about the FLSA.
Following the judgment, Koda Group has agreed to pay the back wages in monthly installments until November 1, 2024. The company has pledged to provide all employees with federal wage protections and to keep accurate payroll records.